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Quint Wellington Redwood ©2002
business value through IT performance
Performance Based Service Management (PBSM)
“A new approach for quick & measurable business performance improvement”
Dragana Mijatovic MSc, MBASenior ConsultantQuint Wellington Redwood
Quint Wellington Redwood ©2002
business value through IT performance
The ITIL implementationProcess-based Implementation
Key Unit of planning: process Key Success Indicator: maturity improvement Implementation style:
Working groups working per process Often experts hired to design ITIL processes Often tool experts hired to configure and implement the
Service Management Tool Traditional discussion on which process first
Quint Wellington Redwood ©2002
business value through IT performance
The challenges of traditional ITIL implementations
No goal/focus Focus on individual processes with a lack of integral
overview Too many KPIs Unprepared management team An inconsistent organization No Communication and Management of Change Plan Processes ITIL compliant, but customers still not
satisfied
Quint Wellington Redwood ©2002
business value through IT performance
Business
Market
IT
Customers
Reliable Service
No Service Outages
No IT Outages
New Services
Quick Time to Market
of ChangesNew Use of IT
Service + Price + Customer =
Perceived Value
ImprovementsService + Price +
Customer = Perceived Value
Serving Customers
Quint Wellington Redwood ©2002
business value through IT performance
IT Services and Value Drivers
1. Lost Production Hours 2. Time to Market of Changes3. Effectiveness of Changes4. Quality of Plans5. Number of Proactive Changes
No IT OutagesQuick
Time to Market of Changes
“Maintain current functionality”
“Provide new functionality”
“Give advice on current and new functionality”
New Use of IT
Management Imperative: Communication with the (IT) Customer
Quint Wellington Redwood ©2002
business value through IT performance
Calculating Lost Productivity
A.
No. of incidents and resolution
times
B.
Time that incidents are open
C.
Time that IT customers
cannot work
D.
Excess cost and lost revenue
Priority Total numberAverage time to
repair (days)
Number of users
affected
Gross lost production
days
Cost per day
DependancyNet Lost
production daysNet costs
Costs per day to business per incident
Total cost to the business
Critical 1042 0.7 20 14,227 € 240 50 % 7,113 € 1,707,213 5000 € 3,556,695
High 2796 5.4 10 149,634 € 240 40 % 59,853 € 14,364,817 1000 € 14,963,351
Medium 12196 10.3 4 500,948 € 240 30 % 150,284 € 36,068,234 500 € 62,618,462
Low 376 9.8 1 3,699 € 240 20 % 740 € 177,556 100 € 369,908
16410 668,507 217,991 € 52,317,820 € 81,508,415
Quint Wellington Redwood ©2002
business value through IT performance
Actual Case
5 billion euro global company150 IT staffOver 4500 users50 locations3 IT Shared Service Centers
Quint Wellington Redwood ©2002
business value through IT performance
Net cost to business
January to December 2008
January to May 2009
4.4 mill
3 mill
0.78 mill
Quint Wellington Redwood ©2002
business value through IT performance
Results: Incidents
Explanation Backlog Reduced from 483 (1 Dec
08) to 6 (22 May 09) Reduction of backlog is
not just administrative Some incidents translated
to problems (approx. 30)
Time to Repair Reduced Normal distribution of
performance Goal: maintain current
performance, reduce MTTR of low incidents
Number of Incidents Problem Management
0
100
200
300
400
500
600
December 08 January 09 February 09 March 09 April 09 May 09
Backlog
Open
0,02,04,06,08,0
10,012,014,016,018,020,0
Critical
High
Medium
Low
Quint Wellington Redwood ©2002
business value through IT performance
Customer Results
Reduced lost production hours by over 85% Cost of IT disruptions reduced by over 82% Improved service level performance to over 90% of
calls resolved with reduced timeframe IT employee involvement increased (better
understanding of their contribution to the business)
Quint Wellington Redwood ©2002
business value through IT performance
Getting started
Create a group of people who have ITIL knowledge Implement the Help Desk Implement the Service Management Tool Start registering incidents and service requests Define standard changes For non standard changes implement your accept,
approve, authorize steps Take your deadlines seriously and manage them
Quint Wellington Redwood ©2002
business value through IT performance
Way of working
Quint Wellington Redwood ©2002
business value through IT performance
Typical Project Activity
The following activities will be carried out: Step 1 Measure: Measure performance based on
Value Drivers Step 2 Analyze: Determine areas of improvement
using team members observations in combination with the Value Driver measurements;
Step 3 Plan Activities: Determine measures to improve performance and assign actions to the members of the Improvement Team;
Step 4 Communicate: Explain the findings and the way forward;
Step 5 Execute: Execute performance improvement measures
Stage 3 Performance Improvement
Stage 2MOC
Preparation
Stage 4Advanced
Control
Stage 1Project Start-Up
Quint Wellington Redwood ©2002
business value through IT performance
Performance Based Service Management
Measurable, fact based, result- oriented way of improving IT services delivery, aligned with business objectives
Steps beyond ITIL by limiting the number of business-focused IT KPIs, called the IT Value Drivers
Radically improves IT Organization capabilities in a short
time with easily and unambiguous measurable results
It is a repetitive method building on previous achievements to improve step by step – a defined evolutionary approach
Uses available resources
Quint Wellington Redwood ©2002
business value through IT performance
Characteristics of PBSM
Quick Wins, Business results driven 2 week incremental result windows ongoing
PBSM is built on a core of Management of Change The product is sustainable, long lasting Facilitates skills transfer to the organization Drives positive organizational change through objective
approach, quantitative measures, fact based PBSM is a 'fit for purpose' use of industry recognized
best practices (ITIL, ISO20K, PRINCE2, Lean Six Sigma)
Innovative Practical Measurable Customizable for each engagement
Quint Wellington Redwood ©2002
business value through IT performance
PBSM: Market Proven Methodology
“This project has delivered the CBS the necessary building blocks to improve our productivity. The approach, developed with Quint (reporting, assigning actions for improvement and execution) is applicable to all circumstances and the building blocks can be used over and over again.”
“Quint’s advisors have the know how of the best practices in this area and aren’t afraid to get their hands dirty. We now score an 8 or higher in terms of customer satisfaction and we have Quint to thank for that!”
PBSM elements in conjunction with ITIL v3 are currently being implemented
in a major Greek services organization
Quint Wellington Redwood ©2002
business value through IT performance
“Teach a man to fish… ”
“Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime”
Quint Wellington Redwood ©2002
business value through IT performance
Quint Wellington Redwood
www.quintgroup.comTHIS DOCUMENT CONTAINS PROPRIETARY INFORMATION, WHICH IS PROTECTED BY COPYRIGHT. ALL RIGHTS RESERVED. NO PART OF THIS DOCUMENT MAY BE PHOTOCOPIED, REPRODUCED OR TRANSLATED TO ANOTHER LANGUAGE WITHOUT THE PRIOR CONSENT OF QUINT WELLINGTON REDWOOD, AMSTERDAM© Copyright 2009 Quint Wellington Redwood